Canadian dollar hits 10-month high

Canadian dollar hits 10-month high

Indications of a slight slowdown in the growth of the U.S. economy have spurred the Canadian dollar to its highest level in 10 months, according to the latest numbers.

As reported by MarketPulse, the USD/loonie lost 0.742 over 24 hours as of April 28, and a statement released by the U.S. Federal Open Market Committee (FOMC) on the same day indicated that this year would see fewer rate hikes from the Fed.

Boosted by the weakened U.S. GDP as well as by the growth in oil prices, the USD/CAD exchange currently sits above the 1.25 price level. Defying less optimistic forecasts from various quarters, the Canadian economy is expected to enjoy a boost following some slight weakness in the CAD in Q1 2016.

“Central banks were the main drivers of market activity, but they made their mark not with their actions but by staying in the sidelines. The market expected the Fed to sit this one out and if possible send out a few hints on monetary policy for the next two meetings,” the MarketPulse analysis said of the U.S. economy’s end-of-April situation.